SIE practice questionmediumFINRA Rules
According to FINRA rules, which document must be provided to a new options account before trading begins?
- AStatement of Additional Information
- BRed Herring prospectus
- COptions Disclosure Document (ODD)✓ Correct answer
- DSummary Prospectus
Explanation
Why C — Options Disclosure Document (ODD)
The ODD outlines the risks of options trading and must be delivered prior to trading. The Red Herring is for new issues, the other documents apply to mutual funds.
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